THE P/E EFFECT ON THE CROATIAN STOCK MARKET
Denis Alajbeg, Zoran Bubaš, Ivan Švajhler
Pagini: 84-93
Publicat: 28 Aug 2016
Vizualizări: 2,997
Descărcări: 786
Citations: 7 (Google Scholar)
Citations: 2 (OpenAlex)
Rezumat: This paper is examining the proposition that portfolios of stocks with lower P/E ratios beat portfolios of stocks with higher P/E ratios as well as the aggregate market portfolio of Croatian equities. Testing for the P/E effect in Croatia from 2005 to 2016 revealed that none can be found. Risk adjusted returns of the individual portfolios appear to be distributed randomly, regardless of their P/E level and number of securities. Still, all examined portfolios performed better on a risk-adjusted basis than an equally weighted aggregate market portfolio. This is because the returns of the market portfolio are brought down by companies with negative earnings (negative P/E ratios), which were excluded in the individual portfolios. So, while a clear connection between the level of P/E and subsequent returns could not be found, it seems that in Croatia investors would benefit simply by not selecting negative P/E stocks in their portfolios.
Cuvinte cheie: p/e ratio, investing, croatian stock market
Citează acest articol: Denis Alajbeg, Zoran Bubaš, Ivan Švajhler. THE P/E EFFECT ON THE CROATIAN STOCK MARKET. Journal of International Scientific Publications: Economy & Business 10, 84-93 (2016). https://www.scientific-publications.net/en/article/1001222/
Înapoi la cuprinsul volumului
© 2026 The Author(s). This is an open access article distributed under the terms of the
Creative Commons Attribution License https://creativecommons.org/licenses/by/4.0/, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. This permission does not cover any third party copyrighted material which may appear in the work requested.
Disclaimer: The Publisher and/or the editor(s) are not responsible for the statements, opinions, and data contained in any published works. These are solely the views of the individual author(s) and contributor(s). The Publisher and/or the editor(s) disclaim any liability for injury to individuals or property arising from the ideas, methods, instructions, or products mentioned in the content.
